It is not easy to identify the risk free rate in the context of developing countries like India , neither through both local and international investors’ investigation. However in Indian financial market, there is availability of government securities, hence the rate of return on that securities shall be viable to be considered on the risk free status. To study, a standard risk free rate shall be available, once rate of return on the US treasury is considered by most of investors to be riskless rate. Therefore, the objective of stud is to compare the variability of rate of return on India government bonds with the US treasury’s standard. The data of the 40 months in the year 2008 to 2012 of YTM on the three different maturities of government bonds both in the US and in India . The result indicated that the bonds with maturity of 1 year YTM was not considered as riskless rate due to the high variable in YTM of Indian government. Whereas, YTM on government bonds in India with maturity of 10 years and 20 years can be considered as risk free rate because there was no significant difference between its variability with standard one.